Tavsan Exclusivity Agreement

28 Jun 2007 07:02

Ariana Resources PLC28 June 2007 28 June 2007AIM: AAU ARIANA RESOURCES plc EXCLUSIVITY AGREEMENT ON THE TAVSAN GOLD PROJECT Ariana Resources plc ("Ariana" or "the Company"), the gold exploration companyfocused on Turkey, is pleased to announce that the Company has signed a Letterof Intent with Odyssey Resources Limited, a TSX-V listed company, to acquire theTavsan Gold Project ("Tavsan" or "the Project") in western Turkey. The Letter ofIntent provides Ariana with an exclusivity period of up to nine months tocomplete its due diligence on the Project. Highlights •Tavsan hosts a 43-101 compliant mineral resource of 131,300 oz Au and 401,800 oz Ag (announced by Odyssey on 27th February 2007: see below). •Resource has potential to be upgraded and is potentially heap-leachable. •Project fits Ariana's strategy in western Turkey. The addition of the Tavsan Project to the Ariana portfolio would complement theexisting strategy to build up a substantial resource base across western Turkeyand offers the potential to define a modest heap-leach gold mining opportunity.The due diligence undertaken will look to define all technical, economic andenvironmental issues that will influence the potential viability of the project. Due to the complexity of the due diligence involved, Ariana has requested aperiod of up to nine months for its exclusivity, for which Ariana will payOdyssey a fee. Following due diligence, Ariana will retain the right of firstrefusal for a further six months on the purchase of the Project, subject tocertain earn-back and royalty interests on the property due to Teck ComincoArama ve Madencilik Sanayi Ticaret A.S., a subsidiary of Teck Cominco Limited. Kerim Sener, Managing Director, commented: "This agreement provides Ariana with further confidence that it can realise itsgoal of defining multiple resource targets in the region surrounding itsflagship Sindirgi Gold Project. Odyssey Resources has recognised Ariana as acompany that can ensure maximum value is created at Tavsan." "The addition of Tavsan to our growing portfolio of advanced projects would adda minimum of 130,000 oz Au to our existing 135,000 oz Au JORC resource base inthe region and we believe that the exploration upside at Tavsan provides scopefor additional resource growth." "It is our intention to identify and develop various opportunities in westernTurkey, whilst looking to partner our eastern Turkey assets. With our ongoingprogrammes of exploration, notably at the Kiziltepe prospect, Ariana intends tocontinue to develop our resource base, with the aim of becoming a significantgold producer in the short to medium term." Contacts: Ariana Resources plcMichael Spriggs, Executive Chairman Tel: 07887 998252Kerim Sener, Managing Director Tel: 07709 011954 Beaumont Cornish Limited Roland Cornish Tel: 020 7628 3396 Bankside ConsultantsMichael Padley / Louis Davis Tel: 020 7367 8888 Editors' note: Tavsan Project Resource Estimate As derived from a news release made by Odyssey on 27th February 2007: Resource Category Tonnes Au g/t Ag g/t Au oz Ag ozTotal Indicated 767,000 1.79 3.7 44,200 92,400Total Inferred 1,897,000 1.43 5.1 87,100 309,400 "The estimate was completed by Qualified Persons, Eugene Puritch, P.Eng, TracyArmstong, P.Geo and Antoine Yassa, P.Geo of P&E Mining Consultants Inc. ("P&E"),a geological and mining consulting firm based in Brampton, Ontario. P&Ecalculated the resource based upon a Whittle optimized pit economic model thatincorporated a gold price of US $517 per ounce, a mining cost of US $1.10 perrock tonne mined, a processing cost based upon a 3,000 tonne per day operationof US $10.00 per tonne, a general and administrative cost of US $1.75 per tonne,a process recovery of 95 percent and a consequent cut-off grade of 0.70 gramsper tonne gold ("g/t Au")." The mineral resources reported for the Tavsan Project conform to the CanadianInstitute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on MineralResources and Reserves, Definitions and Guidelines prepared by the CIM StandingCommittee on Reserve Definitions and adopted by CIM Council December 11, 2005. About Ariana Resources Ariana is a dynamic exploration company focused on the discovery and developmentof epithermal gold-silver and porphyry copper-gold deposits with multi-millionounce potential within the Tethyan metallogenic belt of Turkey. The Company hasa portfolio of prospective licences covering 1,820km2, selected on the basis ofits advanced in-house remote sensing database. The Company's flagship asset is the 235km2 Sindirgi Gold Project, which targetsa series of prospects, within a prolific mineralised district in western Turkey.The project hosts over 45km of gold-silver bearing epithermal quartz veins. Ambrian Partners Limited and King & Shaxson Capital Limited are joint brokers tothe Company and Beaumont Cornish Limited is the Company's nominated adviser. For further information on Ariana you are invited to visit the Company's websiteat www.arianaresources.com. Ends This information is provided by RNS The company news service from the London Stock Exchange